Oil advances, optimism prevails around vaccines

Brent was up 0.97% from Thursday’s close to $ 44.63. In New York, WTI climbed 0.65% to $ 42.01.

Oil prices were up Friday, driven by advances in Covid-19 vaccines and the return of negotiations around a recovery plan in the United States, investors however remaining alert to a possible disagreement within the ‘Opep +.

At around 10:40 a.m. GMT (11:40 a.m. CET), a barrel of North Sea Brent for January delivery was up 0.97% from Thursday’s close to $ 44.63.

In New York, the US barrel of WTI for December, which is the last day of trading, climbed 0.65% to 42.01 dollars.

The two benchmark prices have gained around 4% since the start of the week.

“Concerns about demand, which have weighed on prices since the spring, are now giving way to hopes of an economic recovery, thanks in particular to the imminent launch of vaccines,” said Eugen Weinberg, analyst at Commerzbank.

After the good news on the spectacular effectiveness of future vaccines from Pfizer and Moderna, it was the turn of the British laboratory AstraZeneca on Thursday to announce encouraging results of its vaccine in the elderly, a positive sign for the lifting of restrictions on displacement of goods and people who torpedo the consumption of black gold.

“On the other hand, the production discipline of OPEC +, the main factor supporting supply, could run out of steam,” Weinberg warned.

The United Arab Emirates, currently the third largest producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia and Iraq, “has recently shown some reluctance to continue to fully implement the voluntary reductions in- beyond the end of the year, ”he continued.

Members of the alliance of producing countries, known by the acronym Opep +, will meet at the end of the month to decide how much crude will return to market on January 1, or later.

The resumption of US budget discussions were also likely to support crude prices, said Jeffrey Halley of Oanda.

The teams of elected Democrats and Republicans from the Senate and the House of Representatives met Thursday afternoon to discuss two subjects, including that of a stimulus plan, according to a Democratic source in Congress.

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